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Proposed regulations threaten on-demand pay benefits in California

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Proposed regulations threaten on-demand pay benefits in California


One new benefit California employers are using to attract workers is something called Earned Wage Access (EWA). EWA—also known as on-demand pay—gives employees access to their earned wages before a traditional, scheduled payday.

Many on-demand pay platforms link into an employer’s payroll system. Workers can log in and see how much pay they have accrued. If a worker needs money to pay for an unexpected cost, they can tap into their wages ahead of payday. Most on-demand pay providers offer next-day deposits for free. Instant access typically comes with a small ATM-like fee.

Employees have reported using on-demand pay for a variety of reasons. Testimonials have highlighted how access to earned wages can help workers pay bills on time without incurring late fees, or pick up new prescriptions, or help manage the many unforeseen costs that come with raising kids.

Employers that offer the benefit include major national retail chains like the Kroger family of grocery stores, as well as hospitality and healthcare leaders like Los Angeles-based Behavior Frontiers. This last company took the initiative to offer earned wage access benefits in 2022 to boost employees’ financial health and mental wellness.

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Research shows on-demand pay benefits both employers and employees. One 2022 study by payroll provider ADP found 96 percent of employers who offer on-demand pay had an easier time attracting talent. In another study, 95 percent of employees with access to on-demand pay stopped or reduced use of payday loans.

As on-demand pay has grown in popularity, so too has government interest in regulating the product. Proposed regulations in California carry major consequences. In May of 2023, the state’s Department of Financial Protection and Innovation (DFPI) began the process of drafting rules to regulate on-demand pay in the state.

For California employers and workers, DFPI’s proposed regulations are bad news, as they would treat earned wage access as a loan. If enacted, the regulations would take a simple benefit with transparent, low fees and turn it into a complex lending product.

Shoe-horning an innovative benefit like on-demand pay into California’s legacy credit regulations does not make sense. This classification would hurt consumers by encouraging new terms, fees, and penalties. It would also make the benefit more complex and less attractive for employers to offer.

The Los Angeles County Business Federation “BizFed,” an advocacy alliance that unites 240 diverse business organizations representing 420,000 employers with 5 million employees in Southern California, urged state regulators to modify their proposal. BizFed supports DFPI’s attempt to put safeguards around on-demand pay but believe a product shown to help both employers and workers deserves tailored regulations.

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The good news is that DFPI has options at its disposal. The on-demand pay industry has proposed a common-sense compromise that allows employers to continue offering the benefit without a lending classification. This solution, which also guarantees clear fee disclosures and bans interest, late fees and debt collections, keeps things simple for both consumers and businesses.

DFPI is expected to finalize its on-demand pay rules soon. California employers and employees who have come to rely on on-demand pay are counting on regulators to acknowledge the negative consequences of treating the product as a loan.

Regulations that squelch job growth are not in the state’s best interests. DFPI must pivot to a plan that accommodates earned wage access benefits. If the department is not capable of mapping out a more productive path, employers and employees are depending on Gov. Gavin Newsom and the Legislature to step in with solutions.

Tracy Hernandez is Founding CEO of the Los Angeles County Business Federation, widely known as “BizFed.”



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Average Thanksgiving dinner cost was higher in California than most of US: Study

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Average Thanksgiving dinner cost was higher in California than most of US: Study


If you noticed your grocery bill for Thanksgiving staples was more expensive this year, it may be because you live in California, according to the American Farm Bureau Federation.

A new study by the federation shows that Californians were expected to spend more on traditional Thanksgiving dinner ingredients in 2025, according to its 40th annual Thanksgiving dinner survey. Its data showed that a classic Thanksgiving dinner for 10 people in California costs $72.61 compared to the national average of $55.18.

Shannon Douglas, President of the California Farm Bureau, said that expenses for what goes into agriculture production in the Golden State are to blame for the disparity.

“We think that’s a couple of things in play. No. 1, it does cost more to grow food here in California,” Douglass said. “In California, we have the toughest regulatory environment, really, in the country. We have some of the highest labor costs. We know that just regulatory costs alone, for some growers, is about $1,600 per acre; That adds up, of course, very quickly. And in California, we’ve got some of the highest transportation costs, the highest energy costs. Much like so much of the other things in California, it just costs more here.”

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According to Douglass, the bureau’s findings aren’t completely bleak for residents who live in the Golden State. The holiday dinner’s centerpiece was cheaper in California in 2025, she said.

“Turkey, actually, was down, which was a helpful one, and interestingly enough, stuffing is less expensive,” Douglass said. “… But most of the other products were up, particularly like the dairy products in California were a little bit higher.”

In addition to overall costs being more expensive in California, the reduced labor force has also posed a challenge and contributed to the increase in costs.

“We have lost a lot of farmers in California because of this tough regulatory environment that we’ve been forced to navigate,” Douglass said. “In the last 10 years, we’ve lost about 20% of the farmers in the state, and that’s significant, of course. Unfortunately, we’re one of the leading states in the country in farm loss … so, we certainly have that as a challenge.”

According to the American Farm Bureau Federation, the average cost for a classic Thanksgiving dinner for a party of 10 by region was:

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  • West Coast – $61.75
  • Midwest – $54.38
  • Northeast – $60.82
  • South – $50.01.

Still, the California Farm Bureau acknowledged that the average cost in California was significantly higher than in the West Coast region.

To read The American Farm Bureau Federation’s 40th annual Thanksgiving dinner survey, click here.

To read the California Farm Bureau’s study, click here.



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Why Southern California’s most vulnerable youths face hunger during school holidays

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Why Southern California’s most vulnerable youths face hunger during school holidays


The holidays are a time when people gather with loved ones and celebrate abundance, but when California’s most vulnerable young people aren’t going to school because they are on break, it means even more uncertainty over where to find food. And that leads to even greater risk.

That’s the finding of a coalition of Orange County nonprofits that is tracking 500 at-risk youths to better understand what they need to live more stable lives and steer clear of abusive situations.

The collaboration uses a new tool for digital case management, research and prevention, developed by EverFree, which supports human trafficking survivors, in partnership with UC Irvine. It allows the nonprofits to collect information from young people, ranging from those in elementary or middle school to 24-year-olds.

Almost half the students tracked with the digital tool, who were referred by social-work case managers, said they aren’t living a healthy lifestyle, the nonprofits said. One in 5 said they often don’t know how they’ll eat and one-third said they struggle with mental and emotional well-being.

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All of the participants come from families that are either unhoused, living in temporary housing such as motels or sharing crowded dwellings with multiple, unrelated families, said Shelby Feliciano-Sabala, a social worker who is chief partnership officer at Project Hope Alliance, a nonprofit that helps children experiencing homeless. The organization is working on the project with EverFree and Stand Up for Kids Orange County.

School can be much more than a place to learn, Feliciano-Sabala said.

“Youth experiencing homelessness get a sense of belonging, safety and routine when they’re at school,” she said. “When you don’t have that routine, and you don’t have access to that food, that disrupts your regular life.”

When already-vulnerable youths undergo even more uncertainty about getting food, there is often someone waiting to exploit that situation by luring them into coerced labor and sex work or subjecting them to gender-based violence, said Kelsey Morgan, co-founder and chief executive officer of EverFree.

“We’ve heard stories from many of our other partners of youth who run away and are approached by a trafficker who simply offers a McDonald’s cheeseburger,” Morgan said.

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Feliciano-Sabala said she’s heard of traffickers winning over young people with a gift as meager as a bag of Takis rolled tortilla chips.

“Food insecurity is actually resulting in runaway situations where kids are so desperate that any person willing to offer them something small is winning their trust,” she said.

Feliciano-Sabala said private nonprofits represent “critical infrastructure” all year round, but particularly during the holidays, when the need tends to spike.

For families living in their cars, for instance, her nonprofit distributes gift cards to restaurants where they can eat in more comfort and safety, she said. Families staying in hotels with nowhere to cook can receive prepared food such as turkeys and tamales. Her nonprofit also distributes food from its small pantry or buys groceries for families in need.

Inadequate food is an ongoing problem for young people and families across California and the U.S., and it’s not only school-age children who are at risk.

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One in 4 college students nationwide has an unreliable food situation, according to an analysis by the nonpartisan U.S. Government Accountability Office, which provides fact-based information to Congress. However, most of those who are potentially eligible are not enrolled in the federal Supplemental Nutrition Assistance Program — or SNAP — the GAO found.

Congress passed a law in 2024 designed to raise enrollment in federal food-aid among students by giving the U.S. Department of Education the authority to share student data with both federal and state SNAP agencies to determine their eligibility. But in a report this year, the GAO said that the department still had not made a plan to share this data, or given states guidance about the benefits of the law.

Self-assessments completed by young people ages 18-24 in Orange County as part of the nonprofits’ data collection mirror the food-access concerns that young adults across the country report. The research shows about half go to an institution of higher learning full-time, a third go to school and work part-time and the rest work full-time. So even though they have income, many are worrying about food, Morgan said.

In fact, getting enough to eat ranked higher than adequate clothing and safe, stable housing among college-age students who shared their top priorities ahead of the holiday season in 2024, she said. The nonprofits plan to release more insights about youths they’re tracking in 2026.

“When you look to the data of what these youth are asking for, it sheds a lot of light on what those core vulnerabilities are,” Morgan said. “These are individuals who want, desperately, dignified employment. They’re prioritizing things like savings, household income, money management, skills for employment and healthy lifestyles.”

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Feliciano-Sabala said the digital tool was developed in response to the desire among case workers to offer help that is more tailored to those in their care.

The nonprofits hope to share their findings with service providers and policymakers to better address what young people say about their lives and dreams.



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Letters to the Editor: Small pieces of trash litter California’s beaches — and even those harm animals

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Letters to the Editor: Small pieces of trash litter California’s beaches — and even those harm animals


To the editor: It is horrible that even very small pieces of plastic trash harm marine animals (“How little plastic does it take to kill marine animals? Scientists have answers,” Nov. 17). Having picked up trash at Oceano Beach and Pismo Beach for years, I’ve seen flattened mylar balloons (in the most remote places), ubiquitous cigarette butts, toothpick wrappings, plastic grocery bags, bottle caps, degraded plastics of beach toys and Styrofoam. These items are easily found in kelp piles, along with white foam beads and hard plastics in a variety of colors.

I am grateful to the SeaVenture Beach Hotel for holding monthly Pismo Beach cleanups and to Taylor Lane of the Cigarette Surfboard” documentary, who has made it a cause to stop plastic pollution.

Mark Skinner, Los Osos

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